Bhushan Steel bids to open today; JSW Steel, Tata Steel, Bhushan employees in fray

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Bids for troubled steelmaker Bhushan Steel will open today, marking the next round in the race that includes JSW Steel and Tata Steel. Employees of Bhushan Steel have also put in a bid and are reportedly backed by a private fund.

The bids, which were submitted on February 3, will be opened in Deloitte's Gurgaon office. Deloitte's Vijaykumar V Iyer is the IRP (insolvency resolution professional) for Bhushan Steel.

"The bids will be opened in front of the representatives of the bidders. And then the bids will be sent to the Committee of Creditors (CoC). We don't expect an official statement today,"  said an executive from one of the bidding companies.

Once the CoC admits the bids, the Committee will consider the resolution plans of the interested parties.

Tight race

Sources told Moneycontrol the bids range from Rs 28,000 crore to Rs 30,000 crore, twice Bhushan Steel's liquidation value of Rs 15,000 crore.

The company, which makes auto-grade steel and has facilities in Odisha, had accumulated debts of over Rs 50,000 crore, and was referred to the National Company Law Tribunal (NCLT).

The race is now said to be a tight one between JSW Steel and Tata Steel, after companies such as ArcelorMittal, Liberty House and SAIL - who had expressed their interest  -didn't put in a bid. Anil Agarwal's Vedanta was also said to be interested in buying Bhushan Steel but was not clear if it has put in a bid or not.

Promoters own 57.82 percent stake in the company, and over 70 percent of this shareholding is pledged with the banks.